Godrej Consumer spurts as Q2 PAT gains 14% YoY to Rs 491 cr

Godrej Consumer advanced 3.06% to Rs 1,292.90 after the company's consolidated net profit increased 13.53% to Rs 491.31 crore on 2.3% rise in total income to Rs 3,752.32 crore in Q2 FY25 over Q2 FY24.

Profit before exceptional item and tax (PBT) stood at Rs 712.44 crore in September 2024 quarter, up 12.74% YoY. The company reported an exceptional loss of Rs 5.78 crore during the quarter.

During the quarter, EBITDA grew 8% YoY and EBITDA margin increased by 110 bps to 20.8%.

Home care segment grew 12%. Household Insecticides volume grew in mid-single digit. The new liquid vaporiser has been well received with positive initial consumer feedback. Air Fresheners continue to consistently deliver strong double-digit volume growth. Air Fresheners continue to consistently deliver strong double-digit volume growth. After a strong performance, Genteel and Godrej Fab continue to perform very well and gain market share.

 

Personal care segment increased 3%. Personal Wash delivers flattish volume growth. . Magic Handwash continues to deliver strong double-digit volume growth and gain market share. Hair Colours volume grew in double digits. Godrej Expert Rich Cre access packs continue to outperform. Shampoo Hair Colour continues to grow in strong double-digit in volume terms.

Indonesia sales grew by 11% in constant currency terms and 9% in INR terms amd volumes grew by 7%.

Africa, USA and Middle East (organic) sales declined 10% in INR terms due to currency volatility. Absolute EBITDA grew by 33% to Rs 93 crore during the quarter.while EBITDA margin at 14.4%, up 590 bps YoY led by gross margin expansion, mix improvement and reduction in controllable costs.

Sudhir Sitapati, managing director and CEO, GCPL, said, GCPL has had a steady quarter given the headwinds of oil costs and tough consumer demand in India. Our Standalone business grew by 7% in both volume and value and flat reported EBITDA. Our standalone EBITDA margin at 24.3% is at the lower end of our targeted band and is caused entirely by high inflation on palm oil.

Indonesia continued its steady performance with 7% volume, 9% revenue and 17% EBITDA growth. GAUM continued to have a weak topline quarter but an exceptional bottom-line quarter. While organic volumes declined by 8% and value declined by 10%, reported EBITDA grew by 33%. Our margins are now 14.4%

While the overall quarter was 5% organic UVG, 5% organic USG and 8% reported EBITDA, the topline performance in Asia and the bottom-line performance in our international businesses have been encouraging. Our focus is on continuing and improving our volume growth story while the palm oil price volatility plays out over the next few quarters.

Meanwhile, the companys board declared an interim dividend of Rs 5 per share for financial year 2024-2025. The record date is fixed as 1 November, 2024 and it will be paid on or before 23 November 2024.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.

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